Two Petaluma telecom companies report record profits

Two Petaluma telecom companies announced record third-quarter revenues Tuesday, reaching new milestones as they develop markets for their technology.

Calix, the telecom equipment developer, announced third-quarter revenues of $103.6 million, up 27 percent from a year ago.

"It was another very solid quarter for us, with revenues over $100 million for the first time," Michael Ashby, executive vice president and chief financial officer for Calix, told investors in a conference call.

The company, which employs 730 employees mostly in Sonoma County, achieved profitability for the first time using Generally Accepted Accounting Principles (GAAP), he said.

Profits for the third quarter at Calix were $10.2 million using non-GAAP accounting, up from $1.8 million during the same quarter last year.

"That is something we'll attempt to continue to maintain in 2014," he added.

Networking equipment maker Cyan, Inc., also reported record revenues, which grew to $37.7 million, up 31 percent from last year. But the company posted a net loss of $8.6 million, or 19 cents per share.

"The telecom space is historically lumpy," Mark Floyd, chairman and CEO of Cyan, said in a conference call. "This can be particularly true towards the end of the year, as capital budgets are largely exhausted."

Cyan expects lower revenues and bigger losses in the fourth quarter.

The economic uncertainty driven by the debt ceiling crisis and lack of a federal budget are exacerbating the situation, Floyd said.